On Tuesday, the FBMACE ended sharply lower, losing 144.30 points or 3.8% to close at 3651.02 points, making a 13 months new low. As indicated by A, the FBMACE is now heading to the next support at 3587 WinChart Automatic Fibonacci Retracement, while the resistance is at 3817 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the 14, 21, 31 EMA is still serving as the dynamic resistance for the FBMACE, and technically, provided that the FBMACE is still resisted by the dynamic resistance, the technical outlook shall remain bearish biased.

As indicated by B, the Stochastic remains below 30%, with the short term bearish signal still intact, thus the short term movement of the FBMACE shall remains weak, until the Stochastic could break above 30%.

As indicated by C, the -DI and ADX line are rising in tandem, suggesting that the recent volatility of the FBMACE is bearish biased, thus showing a bear market signal. The bear market signal shall remains intact, until the +DI line crosses above the -DI line.

In conclusion, the bearish biased movement of the FBMACE remains intact. If the FBMACE should rebound from the 3587 WinChart Automatic Fibonacci Retracement, it would most likely be just a technical rebound, not any reversal signal.

Find this analysis useful? Why not share it with others? Click Here to send this to a friend

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828
Email: info@straitsindex.com
© Copyright 1997-2010 Straits Index (M) Sdn Bhd All rights reserved